MINNEAPOLIS, MINNESOTA, U.S. — Ceres Global Ag Corp. has secured an exclusive option to acquire Delmar Commodities, Ltd. for approximately C$16 million in cash and the assumption of approximately C$7.6 million in existing term debt. Ceres has the right to purchase Delmar’s shares through July 31.

The transaction is expected to close on or about Aug. 1. If the deal is finalized, Delmar will operate as a subsidiary of Ceres, with Delmar’s operations and employees integrated into Ceres’ overall operational network.

“We believe the addition of Delmar’s grain assets to be an important first step in adding strategic origination for our core products, while also significantly advancing our portfolio diversification strategy with the inclusion of their soybean crush, agricultural seed sales and distribution and birdfeed product lines,” said Robert Day, president and chief executive officer of Ceres. “We see significant value in Delmar’s capabilities, market knowledge and customer relationships, but perhaps the most attractive aspect of Delmar is its people and their talent. This potential combination is an important step for Ceres as we execute our growth strategy, and we look forward to untapping the potential our teams can have working together.”

Dale Heide, president of Delmar, said Delmar’s growth ambitions and plans, combined with Ceres’ customer network and access to capital, “provide us with a unique opportunity to profitably grow together.”

Headquartered in Minneapolis, Minnesota, U.S., Ceres procures and supplies North American agricultural commodities and value-added products, industrial products, fertilizer, energy products and reliable supply chain logistics services to customers worldwide.

Ceres operates five locations, including three sites in Minnesota: Duluth, Minneapolis, and Shakopee. The other two locations are in Northgate, Saskatchewan, Canada, and Port Colborne, Ontario, Canada. Ceres’ facilities throughout North America have an aggregate grain and oilseed storage capacity of approximately 29.7 million bushels.

Ceres also has a 50% interest in Savage Riverport, LLC, a joint venture with Consolidated Grain and Barge Co., a 25% interest in Stewart Southern Railway Inc., a short-line railway located in southeast Saskatchewan with a range of 130 kilometers, and a 17% interest in Canterra Seed Holdings Ltd, a Canada-based seed development company.

Winkler, Manitoba, Canada-based Delmar Commodities is an agricultural processing and supply chain company with four primary business lines: Grain merchandizing, soybean crush, birdfeed production and sales. The company also is the exclusive distributor in western Canada of Legend Seed products under a license and distribution agreement with Legend Seeds, USA.